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Indian Rupee: Rebounds further on sustained foreign fund inflows

MoM Team / Mumbai, May 12, 2017 10:33 AM IST

The Indian rupee climbed further against the dollar in early trades on Friday, 12 May 2017 on increased selling of the greenback by banks and exporters besides a sustained foreign fund inflow.

Weakness in the dollar against other currencies overseas also supported the rupee. Further, a higher opening in the domestic equity market added to the rupee upmove.

The domestic currency opened at Rs 64.31 against the dollar rose to a high of 64.26 before slipping back to a low of 64.34 so far during the day. In the spot currency market, the Indian unit was last seen trading at 64.3075.

Yesterday, scripting its biggest single-day gain in four weeks, the rupee had rallied by 25 paise to close at 64.38 a dollar on heavy selling of the US currency. The forex market also took inspiration from domestic equities' record-setting spree.

Meanwhile, the dollar was steady in Asia on Friday as investors stood cautious in a light regional data day ahead of a meeting of top finance officials from the world's leading economies at the weekend that could provide direction on trade and currencies.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was quoted flat at 99.53. Overnight, the dollar traded above breakeven against a basket of major currencies on Thursday, as President Trump's decision to sack FBI chief James Covey continued to weigh on sentiment while upbeat economic data capped losses.owered by Commodity Insights